REPUBLIC ACT No. 3176
AN ACT TO AMEND SECTION ONE HUNDRED NINETY OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE.
Section 1. The first paragraph of Section one hundred ninety of the National Internal Revenue Code, as amended, is hereby amended to read as follows:
"Sec. 190. Compensating tax. All persons residing or doing business in the Philippines, who purchase or receive from without the Philippines any commodities, goods, wares, or merchandise, excepting those subject to specific taxes under Title IV of this Code, shall pay on the total value thereof at the time they are received by such persons, including freight, postage, insurance, commission and all similar charges, a compensating tax equivalent to the percentage taxes imposed under this Title on original transactions effected by merchants, importers, or manufacturers, such tax to be paid before the withdrawal or removal of said commodities, goods, wares, or merchandise from the customhouse or the post office: Provided, however, That merchants, importers and manufacturers, who are subject to...
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Republic Acts
AN ACT TO AMEND SECTION ONE HUNDRED NINETY OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX
Republic Act No. 3176
Compensating Tax on Imported Goods
- Imposes a compensating tax on persons residing or doing business in the Philippines who purchase or receive commodities, goods, wares, or merchandise from outside the Philippines, except those subject to specific taxes under Title IV of the National Internal Revenue Code. (Section 1)
- The compensating tax is equivalent to the percentage taxes imposed on original transactions by merchants, importers, or manufacturers under the same Title. (Section 1)
- The tax is payable before the withdrawal or removal of the goods from the customs house or post office. (Section 1)
- The tax base includes the total value of the goods at the time of receipt, including freight, postage, insurance, commission, and similar charges. (Section 1)
- Merchants, importers, and manufacturers subject to taxes under Sections 184, 185, 186, or 189 are exempt from the compensating tax if the imported goods are: (Section 1)
- To be sold, resold, bartered, or exchanged
- To be used in manufacturing or preparing articles for sale, barter, or exchange
- To form part of the manufactured or prepared articles
- The compensating tax does not apply to: (Section 1)
- Articles to be used by the importer in manufacturing or preparing articles subject to specific tax
- Articles for consignment abroad and to form part thereof
- Articles to be used by the importer as a passenger and/or cargo vessel, including engines and spare parts
- If imported articles are used for other purposes without paying the compensating tax, the importer must: (Section 1)
- Make an entry in the books of accounts, if any
- Send a written notice to the Commissioner of Internal Revenue
- Pay the corresponding compensating tax within 10 days from the date of entry or notice
- Failure to pay the tax within 10 days results in a 25% increase in the tax amount, which forms part of the tax. (Section 1)
- The Act took effect upon its approval on June 17, 1961. (Section 2)
- Imposes a compensating tax on persons residing or doing business in the Philippines who purchase or receive commodities, goods, wares, or merchandise from outside the Philippines, except those subject to specific taxes under Title IV of the National Internal Revenue Code. (Section 1)
- The compensating tax is equivalent to the percentage taxes imposed on original transactions by merchants, importers, or manufacturers under the same Title. (Section 1)
- The tax is payable before the withdrawal or removal of the goods from the customs house or post office. (Section 1)
- The tax base includes the total value of the goods at the time of receipt, including freight, postage, insurance, commission, and similar charges. (Section 1)
- Merchants, importers, and manufacturers subject to taxes under Sections 184, 185, 186, or 189 are exempt from the compensating tax if the imported goods are: (Section 1)
- To be sold, resold, bartered, or exchanged
- To be used in manufacturing or preparing articles for sale, barter, or exchange
- To form part of the manufactured or prepared articles
- The compensating tax does not apply to: (Section 1)
- Articles to be used by the importer in manufacturing or preparing articles subject to specific tax
- Articles for consignment abroad and to form part thereof
- Articles to be used by the importer as a passenger and/or cargo vessel, including engines and spare parts
- If imported articles are used for other purposes without paying the compensating tax, the importer must: (Section 1)
- Make an entry in the books of accounts, if any
- Send a written notice to the Commissioner of Internal Revenue
- Pay the corresponding compensating tax within 10 days from the date of entry or notice
- Failure to pay the tax within 10 days results in a 25% increase in the tax amount, which forms part of the tax. (Section 1)
- The Act took effect upon its approval on June 17, 1961. (Section 2)